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  • Derek Macpherson: Is It A Love Affair Or A Tryst?

    Source: Brian Sylvester of The Gold Report (3/12/14)

    www.theaureport.com/pub/na/derek-macpher...

    Derek MacphersonInvestors have again begun flirting with the junior mining sector. Will it lead to a love affair or is it just a tryst? Derek Macpherson, a mining analyst with M Partners, believes it is still too early to be taking on high-risk, high-leverage names. In this interview with The Gold Report, he advises investors to carefully choose low-risk companies, even in this early stage of a rising gold price environment, and names a handful that investors could fall in love with.

    The Gold Report: Canada's Globe and Mail reports that gold miners wrote off $17 billion in 2013. Does that encourage investors seeking greater exposure to precious metals to ignore the bigger names and look more closely at small-cap gold and silver equities?

    Derek Macpherson: I think it makes investors a little more selective. During the last upturn in the gold market many of the big-cap companies purchased and built large, lower-grade projects; these projects have seen the majority of the write-downs over the last two years. This does not necessarily mean that there are no good big-cap mining equities; but it forces investors to be selective. However, many of the small-cap equities have undeservedly sold-off with their larger peers. We believe this creates an opportunity for investors to selectively add to their portfolios.

    TGR: The junior mining sector is seeing some renewed interest from suitors, but is not yet the market darling. Do you believe this investor flirtation is likely to lead to a long-term love affair or is it more akin to a tryst?

    DM: I think it's a little too early to tell. We're at the first or second date stage and we don't know whether this is the one or if it's a short-term fling. It is still too early to be investing in high-risk, high-leverage names. It fits well with our investment thesis and what we talked about the last time we spoke, which was that we like low-risk names even in the early stages of this rising gold price environment.

    TGR: Low-risk names. Would you deem this a value sector right now?

    DM: There are definitely some value plays in the sector, names that have been unjustly sold off, and there are some opportunities to catch them as they come back and their businesses recover.

    "We like Klondex Metals Ltd.for its exceptionally high-grade resource, the strong management team and excellent jurisdiction."

    TGR: In your last interview with The Gold Report you said, "In a rising gold price environment there was more room for error, and setbacks didn't have as large an impact on project economics." We're now in a modest rising gold price environment yet a number of companies have trimmed costs including some that you cover. Is this a sweet spot?

    DM: If we are in a longer-term gold price rally, the best time to get in is at the very beginning. The thing that drives up or is perceived to drive up the gold price is inflation, which is also what drives up underlying costs, something we saw in the last cycle. Early on it was a great time to get in and it was a great time to build projects. That's when the most money was made. Then as the market got a little bit more frothy, we saw costs start to chase the gold price up and margins started to contract. Now is the time for investors to start taking a second look at the mining equities and start to invest.

    TGR: Nonetheless, these equities present significant risk. Grade, jurisdiction and a simple mine plan/geology are common ways companies mitigate investor risk in this sector. In your coverage universe, how would you rank those?

    DM: We view grade and simple mine plan/geology as 1A and 1B. With high grades there is more room for error, helping derisk a project. Similarly, a simple mine plan, like most heap-leach projects, also creates that lower risk environment. Companies don't necessarily need higher grades for that. Second would be jurisdiction. A company can take a little bit more jurisdiction risk with minimal impact, but if the grade or the mine plan doesn't work, the project doesn't work.

    TGR: Are there some other risk mitigators that ought to be included in that list?

    DM: There are two other things that investors sometimes overlook: management and the balance sheet. They will see a great project with great grade, but they will often overlook the management team. A company needs a strong management team to deliver on a project's potential. In this environment, there are good management teams out there that have done it before, which help derisk a project. The second thing that sometimes is overlooked is the balance sheet. Investors definitely want companies with balance sheet flexibility-low debt and a strong cash balance-which helps derisk projects, particularly as they are ramping up.

    TGR: Some of these junior equities have seen dramatic price rises since the beginning of the year and even before that in some cases. There was a bit of a rally in late 2013. How should investors approach those names? With caution?

    "Because Atico Mining Corp.has very high grade, it doesn't need a lot of throughput to generate meaningful free cash flow."

    DM: Investors need to make sure a company has strong fundamentals and a valuation that should allow the rally to continue. Some of those names that have really moved in late December and early January were coming off tax-loss selling. We saw a number of equities rally on that alone, going down toward the end of 2013 with tax-loss selling and then rebounding in early 2014. From a trading perspective, after a strong rally investors want to wait for equities to take a pause, or even pull back a little, before stepping into names that continue to have attractive valuations.

    TGR: What are some of what you would consider lower-risk gold names that you cover?

    DM: The two low-risk gold names that we continue to like are Klondex Mines Ltd. (KDX:TSX; KLNDF:OTCBB) and Lake Shore Gold Corp. (LSG:TSX). We like Klondex for its exceptionally high-grade resource, the strong management team and excellent jurisdiction. Klondex is based in Nevada and Paul Huet leads the management team. With its recent acquisition of the Midas mine and mill from Newmont Mining Corp. (NEM:NYSE), Klondex is well positioned to deliver on a promise of the high grade at Fire Creek.

    TGR: How easily will Midas fit into the development plan at Fire Creek?

    DM: Midas fits in very easily. Klondex has been toll milling its ore at the Midas mill prior to the acquisition. The Midas mill wasn't running at full capacity, so there's opportunity to increase throughput with ore from Fire Creek. There is also exploration upside at the Midas mine; Klondex may be able to extend the mine life there as well.

    TGR: Investors watching Klondex are eagerly anticipating its preliminary economic assessment (PEA). What do you expect to see?

    DR: I think the PEA is going to have strong economics not only because of the high grades at Fire Creek but also because a lot of the capital has already been spent. It's a straightforward mine and Klondex has the expertise and experience to develop it. Klondex has already acquired the milling infrastructure, reducing the initial capital commitment.

    TGR: Lake Shore Gold has lowered costs and improved its grade in four straight quarters. Has Lake Shore Gold turned the corner?

    DM: We think Lake Shore Gold is starting to show signs that it has. We are seeing the culmination of several years of work to get Lake Shore to where it is. The company finished the mill expansion in late 2013 and at the same it finished the development work it needed to do at Timmins West and at Bell Creek so that Lake Shore Gold could access its higher grades on a more consistent basis.

    "Trevali Mining Corp. has material growth on the horizon."

    Our site visit in November 2013 demonstrated to us that Lake Shore Gold is focused on improving grade control at the Timmins West complex in order to keep head grades between 4.5 and 5 grams per tonne, where they need to be to keep the project economic over the medium term. Improving grade has directly resulted in its cost control efforts bearing fruit.

    TGR: What are some other gold names you cover that could be poised for growth?

    DM: On the growth side we continue to like Temex Resources Corp. (TME:TSX.V; TQ1:FSE). Temex has very high grades at Whitney and there are a couple of key catalysts coming in the near term. Besides drill results we probably will see an initial PEA later this year. We expect to see the drills start up again this summer, providing an opportunity to expand on a high-grade potential in a very strategic location.

    The other gold name we just started covering that we think has an opportunity to grow is Marlin Gold Mining Ltd. (MLN:TSX.V). The company is at the final stages of building its La Trinidad mine in Mexico; we expect the first gold pour in the coming weeks. With that gold pour Marlin is going to make the transition from developer to producer. The valuation could easily reflect the developer multiples; there's an opportunity for the stock to rerate.

    TGR: You're not scared off of Mexico based on the new royalty?

    DM: I think the new royalty is priced into most stocks and companies have come to terms with the impact. The Mexican government realizes how important mining is for the long-term health of its economy, so I don't think this is a case where we are going to see a series of mining tax increases.

    TGR: What should investors expect from La Trinidad once it's reached commercial production?

    DM: We're expecting La Trinidad to produce around 50,000 ounces gold a year once it ramps up. This year it's going to be a little bit lower grade and then it's going to start delivering on its promise. Marlin is unique. For a heap leach it has relatively high grades with the head grade forecast around 1.5 grams per tonne in 2015 and beyond.

    TGR: Will that generate free cash flow?

    DM: We expect Marlin to generate material free cash flow in the $20-25 million a year range at current gold prices. Being a high-grade producer with significant free cash flow sets Marlin up to either grow via acquisition or through exploration. The area surrounding La Trinidad has great potential and has seen limited exploration in recent years as the company has focused on building La Trinidad.

    TGR: What are some new names that are under coverage now that weren't when we talked to you in October?

    DM: A couple of the names that we've added to our coverage list besides Marlin are Rambler Metals & Mining Plc (RAB:TSX.V; RMM:LSE) and Atico Mining Corp. (ATY:TSX.V; ATCMF:OTCBB). Rambler is a high-grade base metal mine in Newfoundland, a very safe jurisdiction.

    Rambler is operating the Ming mine, which was a past producer. The company brought it back into production over the last couple of years and now has reached the point where it is generating free cash flow, as development spending has declined. We're going to see Rambler's balance sheet improve by the end of March as it pays off what's remaining of its Sprott loan. The other advantage that Rambler has is the Nugget Pond mill, which has the ability to process both copper-rich and gold-rich ores, putting it in a unique position in Newfoundland where there are a lot of interesting deposits, but many of them would not support their own milling infrastructure. Having a permitted mill puts Rambler in a position where it could be a strategic acquirer of assets.

    TGR: You said the other company was Atico.

    DM: Atico is a high-grade copper-gold mine in Colombia that's on the verge of seeing its first production results. We have followed the story for a while and launched coverage early in January. Atico was able to exercise an option and transition from being a developer/explorer to being a producer.

    The company owns 90% of the El Roble mine, which has been in production for almost 20 years. The next key catalyst is the Q4/13 financial results, which are going to include about 30 days of production from the mine. Those 30 days will show the market that this company is shifting to being a producer. Again, similar to some of the other companies we have talked about in that transition stage, Atico is still being valued as a developer. It is trading at 1.1 times 2015 earnings before interest, taxes, depreciation and amortization (EBITDA), which puts it at a steep discount to producing peers.

    TGR: Actually, 320 tons per day (320 tpd) is a pretty small operation. Is that ever going to get above the 1,000 tpd mark?

    DM: The company plans to expand the mill to 650 tpd by the end of the year. Once you get to 650 tpd you have a fairly reasonable operation. Because Atico has very high grade, it doesn't need a lot of throughput to generate meaningful free cash flow.

    TGR: Will they use that to expand its footprint in Colombia?

    DM: I think the plan is to reinvest some of that free cash flow into the larger property. Exploration has been very limited on the property; it has really focused on the main ore body. As Atico generates free cash flow and gets the current operations to a steady state, it is going to start stepping out and looking wider on the property. The mill itself is permitted for 2,000 tpd, so exploration success is likely to lead to an expansion.

    TGR: You cover some companies that are now mining base metals. What's a brief forecast for zinc and copper?

    DM: We continue to prefer zinc to copper. With a number of large zinc mines coming offline and few ready to be built, we think that there's an opportunity for zinc to recover. While we are bullish on zinc in the medium term, near term we are only modestly bullish because of the amount of inventory that's in the LME warehouses that has to be worked off before the likely supply deficit starts to impact pricing.

    For copper there are a number of large projects sitting out there. While some of them have been delayed and that takes the pressure off the oversupply in the near term, any kind of bullish move in copper could move those projects back into the construction pipeline. We're a little bit more neutral on copper and its pricing going forward.

    If investors are going to be in that mid-cap base metals space they need to stay with companies that have material growth to support the current multiples. We continue to like Imperial Metals Corp. (III:TSX) andTrevali Mining Corp. (TV:TSX; TREVF:OTCQX; TV:BVL); both have material growth on the horizon. Trevali plans to have its New Brunswick assets come on-line in 2015.

    Saving that, we suggest that investors look a little further down cap and look at the discounted valuations in the base metals space. Two companies that we cover there are Atico and Rambler.

    TGR: Does Trevali have sufficient cash to act as a cushion in case of lower prices?

    DM: Trevali's assets give it a pretty reasonable all-in cost based on a zinc net of byproducts basis. In 2015 we model Trevali being at US$0.47/pound of zinc net of byproducts, which gives it a reasonable margin to operate at current zinc prices. The investment opportunity with Trevali is unique because it's one of the only zinc producers listed on the Toronto Stock Exchange, so any kind of run in zinc price and it's going to catch a natural bid.

    TGR: Trevali announced commercial production at Santander at the beginning of February. That's the first step in derisking that name as a whole. What's the next step?

    DM: The next step for Trevali is the New Brunswick PEA. It will give investors a glimpse into what the economics look like for the restart of Caribou and what the company can look like in 2015 and beyond. I think that is the next key derisking step for investors.

    TGR: Imperial Metals is an established company. Where does it fit into Canada's base metals producers?

    DM: Imperial is going to end up being one of the larger mid-cap producers once Red Chris is ramped up to the 30,000 tpd level. We're looking for its production profile and free cash flow to more than double once Red Chris is in commercial production. That puts Imperial at the top end of the midtier space. While we only model a 30,000 tpd asset at Red Chris long term, we think that the opportunity exists for Imperial to materially expand production, but there are limited details on what that may look like.

    Imperial is looking at May 2014 for commissioning. We model Q3/14, which is about a month later, but Imperial so far has been delivering on its critical timeline items. The key thing that we're watching for is the Iskut Extension of the power line. Imperial is completing that themselves and is scheduled to be finished in May 2014, the same time commissioning is supposed to start. We view that as probably the highest risk to both the project timeline and the budget.

    TGR: Any parting thoughts to leave with us?

    DM: We're starting to see some positive signs in the precious metals space. While we like what we're seeing currently, I think investors should still continue to be selective and focus on low-risk names in this early stage. If this is the early stage of a longer-term rally, we think that's where the money is going to flow first.

    TGR: Thanks for your insights.

    Derek Macpherson is a mining analyst at M Partners; before joining M Partners he worked in mining research for a bank-owned investment dealer. Prior to entering capital markets, Macpherson spent six years working as a metallurgist. Macpherson has a Bachelor of Engineering and Management in materials science and a finance-focused MBA.

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    DISCLOSURE:
    1) Brian Sylvester conducted this interview for The Gold Report and provides services to The Gold Reportas an independent contractor. He or his family own shares of the company mentioned in this interview: None.
    2) The following companies mentioned in the interview are sponsors of The Gold Report: Klondex Mines Ltd. and Trevali Mining Corp. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.
    3) Derek Macpherson: I or my family own shares of the following companies mentioned in this interview: None. I personally or my family am paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: Klondex Mines Ltd., Atico Mining Corp.Temex Resources Corp. and Trevali Mining Corp. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
    4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.
    5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.

    6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

    Mar 12 6:20 PM | Link | Comment!
  • Paul Adams: Investor-Friendly Australian Projects Around The World

    Source: Kevin Michael Grace of The Mining Report (3/11/14)

    www.theaureport.com/pub/na/paul-adams-in...

    Rather than shoot for the stars, Paul Adams of DJ Carmichael argues that junior miners should focus on more modest projects best suited to maximizing shareholder value. This means projects with reasonable capex, good grades and short turnaround times. In this interview with The Mining Report, Adams suggests gold, copper, iron ore and rare earths projects that can weather the complete commodities cycle, as well as a fascinating gold-silver outlier in Peru.

    The Mining Report: After over two years of gloom, we're seeing renewed optimism regarding mining equities in North America. Is there similar optimism in Australia?

    Paul Adams: There is, but the change in sentiment is pretty much in its infancy down here. We recently undertook some analysis of the returns from the various subindices in the market. The small resources index here in Australia is at about +4.3% for 2014 compared to a -8% return for December. The recent surge in the gold price has certainly helped lift the mood. Newcrest Mining Ltd. (NM:TSX; NCM:ASX), our largest-cap gold stock, has risen about 63% since its recent lows in December.

    The materials sector in Australia is tied closely to sentiment on Chinese growth, and headwinds there tend to have major repercussions. Both BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK) and Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) have had really strong starts, but they're pulling back a little now as the price of iron ore landed in China has dropped about $10. But those two companies have such a heavy weighting on the materials index that it's really difficult to get a full picture of what's going on.

    TMR: With regard to China, how much growth do you foresee?

    "The materials sector in Australia is tied closely to sentiment on Chinese growth, and headwinds there tend to have major repercussions."

    PA: Five years ago, China's GDP growth was around 12%. Obviously, as the size of the Chinese economy increases, they can't continue growing at that speed. We expect growth in the 6.5-7.5% range for the next year or two.

    TMR: What's your 2014 outlook for precious and industrial metals prices?

    PA: We think the current gold price is about right, plus/minus $100 per oz ($100/oz). Wobbles in the emerging markets have prompted gold's recent move up into the $1,300/oz range. We're seeing gold coming back as an alternative investment, a bit of a safe haven.

    We're relatively bullish on platinum and palladium given conditions in Southern Africa.

    TMR: What about silver?

    PA: I don't see a major diversion from the current gold/silver ratio.

    TMR: How about industrial and critical metals?

    PA: The consensus data for the industrial metals generally looks positive for 2014 and into 2015. Obviously, we want to see what effect the Indonesian ban on raw exports will have. That's very important to nickel prices.

    Zinc and lead should be reasonably well supported. There is very muted mine supply growth. As the global economy improves, there are going to be some increases in industrial demand for those particular metals. There's softness in the copper market. With the consensus price probably falling below $7,000/ton, inventories are growing. These data are conflicting, however, and copper has a history of staying up longer than many had anticipated.

    TMR: You've said that juniors should choose appropriately sized projects in order to have the best chance of generating shareholder wealth. Could you expand on that?

    PA: In a post-global-financial-crisis and post-metals-boom world, we're seeing a lot of companies with large projects that can't get financed. Investors today want to see projects that can weather the complete commodities price cycle. Our view is that we would rather see a good management team take on a Tier 2 or Tier 3 project in a good jurisdiction with a reasonable capex and a reasonable timeframe, rather than a Tier 1 project they ultimately won't be able to develop without joint ventures.

    TMR: With regard to timeframe, how long is too long?

    PA: A project that looks like it's going to take much longer than four to five years to get into production is probably a little bit too far out.

    TMR: What's the danger zone for capex?

    PA: It depends on the economics of the individual project, but I think a capex north of about $600-700 million ($600-700M) is pretty high. The sweet spot for small companies is somewhere up to $200-250M.

    TMR: Is it difficult for mining companies to keep expectations modest? Isn't there a natural tendency to shoot for the stars?

    PA: With many mining companies, management has come from majors such as BHP, Rio Tinto or Freeport-McMoRan Copper & Gold Inc. (FCX:NYSE). They're used to dealing with big projects and big budgets. There's a degree of relearning when you're in a small company; you have to be quick, nimble and you must count the pennies. There is a tendency to shoot for the stars, with the belief that maybe you'll settle for the moon. But the statistics tell us this isn't likely to happen.

    We look for teams that have a measured approach to development because smaller projects are easier to develop without overly diluting shareholders in the process. Some management teams forget about that. They're so intent on making a huge discovery that they forget about the shareholders along the way.

    TMR: Which jurisdictions do you like best now?

    PA: Certain parts of South America offer good opportunities. We particularly like Chile. The other emerging jurisdiction for Australian Stock Exchange (ASX)-listed companies is the United States. Nevada would certainly be front and center, then Arizona, then parts of Utah and Wyoming.

    TMR: Chile is politically and socially stable, but concerns have been raised about infrastructure, in particular, deficiencies of water and electricity. What do you think of this?

    PA: We've been to Chile three or four times over the past three years, and water and electricity are major issues. For instance, Barrick Gold Corp.'s (ABX:TSX; ABX:NYSE) Pascua Lama capex has blown up. To get water to the high Andes, it must be pumped from the coast. And if you're not close to existing infrastructure, power costs are a major hurdle.

    TMR: What companies do you like in Chile?

    "Hot Chili Ltd. sought areas that fulfilled its criteria and found, negotiated and acquired three projects very quietly."

    PA: We've followed Hot Chili Ltd. (HCH:ASX) for quite a long time now. We like the way management went about targeting its copper projects. Back in 2009, there really wasn't much of a junior presence in Chile. Two or three companies dominated most of the belts, in particular, Corporación Nacional del Cobre (CODELCO). Hot Chili didn't go into the country looking to see what was on offer. It went there with certain criteria in mind. It then sought areas that fulfilled that criteria and found, negotiated and acquired three projects very quietly.

    Hot Chili chose projects in the iron-oxide-copper-gold (IOCG) belt. The advantage there over the high Andes projects is stark. They're low altitude, close to the coast and close to infrastructure, so development hurdles will be lower.

    TMR: Hot Chili did over 100,000 meters (100Km) of drilling at Productora last year. How productive was it?

    PA: Productora has increased in size quite dramatically. If you have a footprint several kilometers long, that requires quite a bit of drilling to get it up to reserve status. The company wants to move its current resource, now mostly in the Inferred category, into the Measured and Indicated categories. And its delineation drilling at Productora has enabled it to do just that.

    In addition, Hot Chili made several new discoveries through the application of some very clever geochemistry. That opened up a second front for exploration to keep expanding the resource base and that required further drilling over and above the delineation drilling.

    TMR: When can we expect a reserve announcement from Productora?

    PA: Very soon. Toward the end of Q1/14.

    TMR: The estimates that I've seen for Productora's capex are in the $600-650M range. How will Hot Chili raise that capital?

    PA: That's a good question, and I have to note that a capex of this size is pushing our envelope with respect to what we think is appropriate for a small company. But Hot Chili is in a favorable position. The relationship between the company and its major partner in the project, Compañía de Acero del Pacífico (CAP), Chile's largest iron ore producer, is extremely important.

    I think we shall see an infrastructure agreement between Hot Chili and Compañía de Acero del Pacífico, which will bring access to port and rail and access to an infrastructure corridor to bring seawater to Productora. An agreement would facilitate capex certainty and perhaps reduce the capex slightly. Of course, it is no secret that there are other majors interested in this project.

    TMR: Lundin Mining Corp. (LUN:TSX) owns more than 8% of Hot Chili. How significant is that?

    PA: Lundin has been very active in Chile and has a strategy to expand its presence there. Will it be part of Productora at the end of the day? We'll have to wait and see, but we wouldn't be surprised.

    TMR: What do you make of Hot Chili's second project, the Frontera copper-gold project?

    PA: Like Productora, Frontera is surrounded by Compañía de Acero properties. It has quite a lot of potential to become a project that would feed into this infrastructure hub idea Hot Chili is trying to generate. It's a porphyry deposit, larger than Productora but lower grade. But, again, its geographical location gives it certain advantages.

    TMR: What's your rating and target price for Hot Chili?

    PA: We rate it a Buy with a target price of $0.99. We think that 2014 is going to be a critical year for the company. We expect that the ownership of Productora will become somewhat more certain.

    TMR: Which ASX iron ore project do you like?

    PA: Amex Resources Ltd. (AXZ:ASX). It has the Mba Delta Ironsand project in Fiji. Initial capex is about $125M, and in December it secured a $100M debt-financing facility. In January, it entered into a $100M construction and procurement agreement. The project has, in fact, started. We like this because operating costs are less than $30/ton for its product. Mine life stands currently at 20 years, and there is a lot of opportunity to push that out to 45 years.

    The Fijian government wants the delta dredged because it will reduce the risk of flooding to the surrounding area. So it's a win-win, really: increasing employment and government revenue, as well as improving the environment. Mba is a really good example of a long-life, cash-producing asset with 100% ownership. This is what we mean when we talk about an appropriately sized project.

    TMR: From this side of the world, Fiji is not a name one normally associates with the mining industry.

    PA: Recent political events in Fiji have raised concern, but don't forget, Fiji has a very long mining history. Most famous is the Emperor gold mine, which operated for decades. Placer Dome, before it got taken over by Barrick, had a big copper exploration project called Namosi.

    TMR: What's your rating and target price for Amex?

    PA: We rate it a Speculative Buy with a target price of $2.15.

    TMR: Let's talk about critical minerals projects.

    PA: One manganese project we liked the look of a couple years ago was Spitfire Resources Ltd. (SPI:ASX) South Woodie Woodie project in the Pilbara district in Western Australia. The company was looking to follow up on its initial exploration success at Contact and Contact North. Numerous lookalike geophysical targets were generated through 2012 and 2013. These were drilled last year, and manganese was discovered.

    Management decided subsequently that the exploration necessary to fully assess its numerous opportunities would result in an uncertain outcome, and potentially very dilutionary to shareholders. So the company elected to try and find a partner.

    TMR: What's your rating and target price for Spitfire?

    PA: Because of pending negotiations on South Woodie Woodie, we rate it a Hold.

    TMR: How about rare earth elements (REEs)?

    PA: Considering the activities of Lynas Corp. (LYC:ASX) and Molycorp Inc. (MCP:NYSE), we believe pricing in the light rare earth elements (LREEs) is going to be soft going forward. So we decided that our interest is only in projects dominated by heavy rare earth elements (HREEs). There are only three or four of those on the ASX.

    "Northern Minerals Ltd. is blessed with one of the simplest mineral assemblages, dominated by xenotime."

    We've elected to look at Northern Minerals Ltd. (NTU:ASX), which has the Browns Range HREE project in Western Australia. Northern has recently announced a massive increase to its resource base, which is now close to 50,000 tons (50 Kt) contained total rare earth oxides (TREO). That's from a resource of 6.5 million tons (6.5 Mt) at about 0.75%, of which the Wolverine project is the flagship. A Wolverine feasibility study is scheduled for completion in late 2014.

    The key to all REE developments is definitely metallurgy. Northern Minerals is blessed with one of the simplest mineral assemblages, dominated by xenotime. So here we have a company with 100% ownership, a fraction of the capex common to its peers and a very reasonable potential timeframe to production.

    TMR: I've been told that REE projects that require huge production to become profitable are dubious because of the scarcity of end users. How does Northern stack up in this respect?

    PA: The important thing here is the distribution of metals. Molycorp, for instance, does have to move very large amounts of material because the pricing for the lights is relatively soft. They can't produce a lot of HREEs without producing a lot more LREEs. That's the catch-22. But if you have a small, high-grade project like Northern's that is dominated by HREEs, then you get a pricing advantage, and overproduction is not a problem.

    TMR: What's your rating and price target for Northern Minerals?

    PA: We rate it a Speculative Buy, but don't currently have a price target. We are awaiting results from their pilot project. So far, however, TREO recoveries are looking extremely good.

    TMR: Are there any ASX-listed gold producers that have caught your interest?

    PA: We look to low-cost gold producers that, again, can withstand the commodity price cycle. In 2006, for example, we took an early position in Medusa Mining Ltd. (MLL:TSX.V; MML:ASX; MML:LSE). Medusa had a high-grade, vein-style system in the Philippines, and its valuation exceeded $1 billion ($1B). Some of the personnel who were involved in Medusa moved to Kingsrose Mining Ltd. (KRM:ASK), which is exploiting a similar, high-grade, narrow-vein deposit in Sumatra in Indonesia called Way Linggo. Its costs after silver credits are going to be somewhere in the region of $300-400/oz, similar to Medusa's.

    TMR: Kingsrose trades now at $0.35. That's rather modest considering its outstanding production cost, no?

    PA: You're right. Kingsrose currently has a market cap of about $116M. It has made a number of alterations to its milling circuit. It also had a tough year in 2013 following the death of a miner. However, after going through the necessary administrative hurdles, the company now anticipates full approval to recommence its production. We believe that when production begins again, likely in March or April, it will ramp up to its 40 Koz target relatively quickly.

    TMR: What's your rating and target price for Kingsrose?

    PA: We rate it a Speculative Buy with a target price of $0.60.

    TMR: How about ASX-listed gold projects in Brazil?

    PA: We had followed Cleveland Mining Co. Ltd. (CDG:ASX) and its Premier gold mine. We liked its team, but we've also seen that Brazil has been very hard for ASX-listed gold producers. I think most of the problems there are geological because the gold tends to be very nuggety and discontinuous in some of these high-grade veins. We want to see Cleveland get a little bit further down the track before we feel comfortable reinitiating coverage.

    Orinoco Gold Ltd. (OGX:ASX) has the Cascavel project in Brazil. We're waiting for some further confirmation on its continuity of mineralization. It's very hard to get a grade determination in some of these projects because of the nuggety nature of the gold.

    TMR: Any other ASX companies you'd like to mention?

    PA: One that has caught our eye is Inca Minerals Ltd. (ICG:ASX). It has the Chanape project in Peru. Several midtier and major mining houses are now requesting site visits and signing confidentiality agreements. So that gives you an indication that there is something going on there. Initial exploration was centered on gold- and silver-rich breccia pipes that outcrop on surface. More than 90 have been identified.

    Our view is that these breccia pipes coalesce at depth to some degree, but a hole drilled from surface came up with a 108m interval at 2 grams per tonne (2 g/t) gold and 41 g/t silver. The last three holes drilled have targeted the deeper porphyry parts of the system. Through some really good geochemistry and some geophysics, Inca has determined the vectoring on the central parts of the system. So the indications are that it is getting closer. Hole 11 intersected a 460m-long intersection of porphyry and hydrothermal breccias with the most amount of visible metal seen so far. That tells you they are on the right track. Technical comparisons have been made to the Toromocho project, located 30Km away.

    TMR: Whose project is that?

    PA: Chinalco (Aluminum Corporation of China Limited) (ACH:NYSE). That's a 2.15 billion ton (2.15 Bt) project bought for $750M and currently in construction. Inca is not saying that it has another Toromocho. What it is saying is that it has geological characteristics that display a similar complexity and similar alteration to Toromocho: near-surface, epithermal breccia-style mineralization that overlie a porphyry system.

    Inca is ticking boxes with respect to the technical aspects of the project, and that's what has piqued the interest of the majors that now want to have a look. Chanape does not fit our thesis of small companies choosing small projects, but there are always exceptions to the rule. It's early days yet, but this could be quite exciting.

    TMR: You don't cover Inca Minerals yet?

    PA: Not yet. We've written a couple of short notes on it. We're extremely interested to see where their latest hole comes in with respect to grade. If results are similar to the first, we'll be looking at this company a lot more seriously.

    TMR: Paul, thank you for your time and your insights.

    Paul Adams is a geologist and head of research at DJ Carmichael. He has 16 years of experience in the mining industry, in Australia and elsewhere, and was previously chief geologist and evaluations manager at Placer Dome's Granny Smith mine. He is a member of the Australian Institute of Mining and Metallurgy and has a Graduate Diploma in Applied Finance and Investment from the Financial Services Institute of Australasia.

    Want to read more Mining Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

    DISCLOSURE:
    1) Kevin Michael Grace conducted this interview for The Mining Report and provides services to The Mining Report as an independent contractor. He or his family own shares of the following companies mentioned in this interview: None.
    2) The following companies mentioned in the interview are sponsors of The Mining Report: Hot Chili Ltd. and Northern Minerals Ltd. Streetwise Reports does not accept stock in exchange for its services or as sponsorship payment.
    3) Paul Adams: I or my family own shares of the following companies mentioned in this interview: Hot Chili Ltd. and BHP Billiton Ltd. (which is included in my Superfund). I personally am or my family is paid by the following companies mentioned in this interview: None. My company has a financial relationship with the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview. Comments and opinions expressed are my own comments and opinions. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview.
    4) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts' statements without their consent.
    5) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.
    6) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

    Streetwise - The Gold Report is Copyright © 2014 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110
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    Tel.: (707) 981-8999
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    Mar 11 6:59 PM | Link | Comment!
  • Focus Graphite Inc.: Well Positioned For 'The Next Big Thing' In Graphite

    Source: J. Alec Gimurtu of The Mining Report (3/10/14)

    www.theaureport.com/pub/na/focus-graphit...

    Advances in automotive battery technology are making graphite the next big thing for commodity investors. Graphite is the critical material for the new generation of batteries, even more than lithium or rare earths. In this special interview with The Mining Report, Focus Graphite President and Chief Operating Officer Don Baxter explains the eyebrow-raising supply/demand picture of the graphite industry, the attractive financials of the Lac Knife project and the significance of the graphite industry's first offtake agreement, including what it means to investors looking to understand an unfamiliar but well-positioned market.

    Management Q&A: View From the Top

    The Mining Report: The recent news from Tesla Motors about its plans to build the largest battery factory in the world has generated a lot of investor excitement. Can you give us your perspective on the role of automotive battery technology as the driver of global graphite demand?

    Don Baxter: As a starting point, the graphite industry today is about a half million tons per year of natural flake graphite. It is used in everyday products across many industries including steel, automotive and technology. Graphite touches our lives every day. Graphite is in the brake pads in our cars and has many other common applications. But that is not where the excitement in the graphite industry comes from.

    The big interest in graphite comes from the growth in lithium-ion battery technology. Sales of electric and hybrid vehicles are increasing every quarter and companies like Tesla are spending heavily on battery technology. Graphite is one of the key materials needed to build a lithium-ion battery. In fact, a lithium-ion battery contains 10 times more graphite than lithium. The most critical material for a high performance lithium-ion battery is graphite, not lithium.

    With the accelerating growth of electric and hybrid vehicles, the additional graphite demand from the automotive battery sector could exceed a million tons a year by 2020. That is not including the half million tons that are already used. The world is going to need a lot more graphite. China controls close to 80% of the world's supply right now. That makes battery makers very uncomfortable.

    TMR: A tripling of current graphite consumption in less than six years?

    DB: Yes. The traditional uses for graphite in the steel and automotive industries will continue because there aren't a lot of substitutes in those applications. In the entire battery segment, we are seeing more and more lithium-ion batteries taking over the market space. Lithium-ion batteries are now the battery of choice in most consumer goods, from laptops to cell phones to power tools and more. Not only are the number of applications growing, but also the size of each battery is getting bigger. Inside a lithium-ion battery, the battery component that is made from graphite is the anode. Anodes can be either synthetic or natural graphite, but synthetic is extremely expensive at approximately $20,000/ton ($20/Kt), compared to battery-grade, natural flake graphite at approximately $8/Kt. Not only does natural flake graphite have a cost advantage, there are several performance characteristics that are better for natural than they are for synthetic.

    TMR: What grades or types of graphite are used in the battery sector?

    DB: A producer will make a run-of-mine (ROM) product, which is all the different graphite flake sizes at various carbon grades. In the case of our Lac Knife property in Quebec, all of our products (large, medium and fine flake graphite) are 98% carbon. That is a very pure concentrate for ROM production, especially with the fine flake size.

    In our case, we'll be able to take our lower valued product, the ROM fine flake, and enhance it by sizing, shaping and purifying. In technical terms, we will micronize and spherize the fine flake graphite to create a battery-grade product with a much higher value than the ROM fine flake. In that case, we will have taken a product that we normally would have sold for $900/ton and turned it into a product worth $8/Kt. Even with an increased all-in cost for that value-added processing of between $1,500 and $2,000/ton, it is a significant margin increase.

    TMR: Is the processing of the material at Lac Knife different than at other mines?

    DB: Graphite from varied locales behaves differently during processing. The key thing with Lac Knife is that we can divert our fine size material, which is extremely high purity carbon at 98%. That means our purifying step is only from 98% to 99.95%. Other mines typically have much lower carbon grades, say 90% or less. Lower grades make the initial purification step much more difficult. Producers may be able to physically size and shape the graphite, but the purification is the challenge, if it's possible at all. Lac Knife is unique in that we can divert our high-grade fines to battery applications.

    TMR: Are the upgrading to battery grade and the associated much higher revenue products included in the initial financial models on your website?

    DB: No. All of our current financials are based on run-of-mine product, which is the market that is here today. The Industrial Minerals publication out of the U.K. publishes prices for different sizes and grades of graphite flake and we base our economics on those figures. The analysis shows that the Lac Knife deposit is profitable at today's market prices. That said, we think that we are at the bottom of this price cycle, so we're basing our economics on current market prices.

    Based on today's prices, our economics show great potential, even with what appear to be low market prices. Additional upside will come from value-added processing, which we are advancing in parallel. Once we have the capital expenses (capex) and operating expenses for the value-added processes, we can then add that into our overall economics. There is a tremendous upside based on the high margin of the value-added processing, but it will be a gradual process to get that part of the business up and running because it is dependent on the initial ROM production.

    If everything works out, we would start off with several thousand tons a year going through the process of making battery-grade graphite. Over time and with expansion, we could increase our ability to produce battery grade and spherical graphite as the market demands it. Ultimately, could we put all of our flake into it? Maybe, but for starters, we are basing our project build on conventional mining, which in the case of Lac Knife is a high margin project. Additional margin from value-added processing is a long-term option.

    TMR: So are you saying that the prefeasibility study does not and the full feasibility study will not reflect any additional revenue or expense from the potential production of spherical or battery-grade graphite by Focus Graphite Inc. (FMS:TSX.V; FCSMF:OTCQX; FKC:FSE)?

    DB: Correct. While we are working in parallel with the design of our value-added processing and our ROM processing, the former is not likely to be ready at the time of the overall mine feasibility design. But it will be close. In a sense, the value-added projects keep us as an innovator and a development-stage company longer, so that investors will have a more interesting news flow and more upside over a longer time period.

    TMR: Graphite has been an investment theme for a few years. There are a lot of companies that are moving toward production. Is the market looking at a tidal wave of graphite coming on-line soon?

    DB: I don't think so. At the end of the last economic cycle everybody suddenly noticed graphite. The market went from two companies, Northern Graphite and Focus Graphite Inc., to 50 or 60 companies. There may now be as many as 135 different companies and probably several hundred graphite projects at various stages. However, the leader board is pretty small. There's a long lead time from grassroots exploration to production. In many cases these graphite properties, once you get into the metallurgy, just may not work. I don't see a tidal wave of new mine supply coming to market. I see possibly two or three new producing mines in the next three or four years.

    TMR: What will that new supply do to the market?

    DB: The market can handle that quite well. We expect to see prices trending up through 2016. As demand returns, we have to remember that there were no new mines built in the last economic cycle, so the problem is going to be that much more acute. The time to be building to reach that demand is now. We are excited that Lac Knife shows extremely good economics now, at the bottom of the market. It will get even better as prices start to tick up. By the time we're in production, which should be mid-2016, prices could possibly be as much as $1,000/ton higher than today.

    Investors need to keep in mind that with so many components to a graphite deposit, they have to look at each opportunity very carefully. When the market evaluates all the deposits out there, many won't make the cut and a lot of those companies will just disappear.

    TMR: Can you give us an overview of Lac Knife and what makes it a standout project?

    DB: The Lac Knife deposit is a 9.5 million ton Measured and Indicated resource at 15% Cg (graphitic carbon). It has excellent infrastructure with road, rail and seaport links and immediate access to the electrical grid. The deposit is at surface and will be a low cost, open-pit mine. The low cost mining method is critical. Another important feature of a commercial graphite deposit is a good distribution of large, medium and fine flake in the ore; that is a feature of Lac Knife. We have demonstrated in our pilot plant that we can recover a potentially economic proportion of the large, medium and fine flake graphite at extremely high-grade carbon. We're able to remove the flake from the rock while preserving its size and keeping it clean.

    The nature of the Lac Knife deposit allows us to produce a high-grade concentrate based upon our ROM crushing, grinding and floatation process, entirely by mechanical means. Our ROM production does not have a purification step through a third party. We're able to get the Lac Knife flake extremely clean-even the fine sizes. Most deposits can't do that.

    TMR: The financials based on the prefeasibility study or Preliminary Economic Assessment showed about a $126 million ($126M) capex, including a $25M contingency and a nearly 40% internal rate of return (IRR). Can you give us an overview of those financials?

    DB: The $126M capex is low for a mining project if you compare it to copper, nickel or gold, which many investors are more familiar with. Compared to those same industries, the IRR is fairly high. Taken together, it is a compelling and unique combination in the graphite industry. A lot of people don't understand graphite, but they understand a good investment and a high rate of return.

    Because we think we are now at the price cycle bottom, the project looks extremely good. The net present value at an 8% discount rate comes in at $317M in pretax numbers with a short 2.4-year payback. From a mining industry perspective, that's pretty inviting.

    TMR: What is the significance of the offtake agreement that Focus recently signed?

    DB: The offtake agreement was a first in the graphite industry. There have been some long-term relationships, but as far as having an offtake agreement directly with an end-user, the agreement is historic.

    The significance of the offtake agreement is that it demonstrates we can sell our product. No one asks gold, nickel or copper producers if they can sell their product. For those minerals, there are active commodity markets. Not so in graphite. If I am talking to mine financiers about a graphite project, the first thing they will say is, "How will you sell it?" The offtake agreement removes much of that uncertainty and is proof that we can sell our product.

    The offtake agreement has a 10-year term and was signed with a Chinese conglomerate. This further underpins what we've been saying about the Chinese domestic graphite supply situation. Even within China, people are concerned about a reliable supply. The agreement has a 20,000 ton per year (20 Ktpa) minimum offtake with provisions for up to 90% offtake. Potentially up to 90% of our production could be spoken for. Prices will be set based on current market prices, so if prices rise as we expect, our upside will be protected. The material is all FOB Québec, so we are not paying to ship it to China.

    The offtake agreement has had several follow-on positive effects. It has increased the urgency to line up supplies for some battery manufacturers, companies that may have been a little slow out of the gate but are now suddenly nervous about the availability of supply given the growth prospects. Another positive effect of the offtake agreement is that it leaves us room to advance our value-added processing goals. And the offtake agreement advances the company toward production in that it makes the whole financing step that much easier.

    TMR: What's the next step? Financing?

    DB: Definitely. We're in the middle of the feasibility study right now. We are also working through the permitting, especially the mine closure plan. I want to continue the process toward production. That means going directly into detail engineering, the full engineering, procurement and construction management process to build a mine. To do that we need to finance our project. We're in a due diligence phase on the financing end of things. Because graphite projects are not that common, we're not going straight to the markets but instead working with people who are interested in graphite.

    TMR: What is the timeframe for the feasibility study and goal to get financing secured?

    DB: We're hoping to secure financing in the second quarter of this year. The feasibility study results should be published by late spring/early summer. We're moving fast to get the project shovel ready by the end of this year. That is contingent upon many things including permitting approval and financing. We will look to overlap some of these timeframes if we can. For example, if the mill design is ready to go before we announce the feasibility study, and we've got money in the bank, then we'll proceed right into detailed engineering on the plant.

    TMR: How does rapidly advancing Lac Knife mesh with the long-term goals for the company?

    DB: Based on the progress at Lac Knife, Focus Graphite is now a development company. We're looking to build a mine. The graphite industry is unusual in that it does not have a single large graphite miner. The big companies in graphite are not mining companies. They don't want to be mining companies. We are in the business to build and operate this mine and then grow from there. The longer-term vision for Focus Graphite is to become the company that consolidates more advanced graphite properties.

    TMR: Do any of the international, large-cap miners produce graphite? Companies like Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK), BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK) and Freeport-McMoRan Copper & Gold (FCX:NYSE), for example?

    DB: No, none of them. They're all into gold, base metals and a few minor industrial minerals. The graphite situation is very similar to the rare earths where the Chinese cratered the markets two decades ago and then made it uneconomic to develop graphite or rare earths anywhere else. I mean, rare earths aren't rare. They've just never been developed outside of China because it wasn't economic.

    The same with graphite. The Chinese in the early 1990s flooded these markets in exchange for foreign currency. The result was both graphite and rare earth mining became uneconomic outside of China. When it was over, there was one operating flake graphite mine in North America. It was small and produced only 20 Ktpa of concentrate. There aren't the big graphite plays out there that make it interesting for the majors. Further, they're not used to the market because it is not a deeply traded commodity market. It's an industrial mineral and it's a marketing game. That is why the offtake agreement is so important.

    TMR: What are three reasons why investors should listen to the graphite story and take a look at Focus Graphite?

    DB: First, investors should look at graphite because there is a lot of evidence that graphite is going to be the next big thing. Investors realize that graphite is used in a lot of everyday products, but with the growth of new battery technology and the China supply situation, the world is going to need a whole lot more graphite. The supply/demand story is very compelling.

    The second reason investors should look at Focus Graphite is because of our industry first offtake agreement. The agreement is a clear sign that we can sell our product and that a third party has reviewed our plans and done enough due diligence to sign up to do business with us for the long term. The offtake agreement provides a level of investor security that is head and shoulders above our potential competition.

    The final reason investors should take a look at Focus Graphite is our overall cost structure and financials. Our production cost will be competitive with the lowest cost producers in China. The financials are compelling based on ROM production and we have options to increase revenue significantly from additional value added processing.

    TMR: Thanks for speaking with us.

    DB: It has been a pleasure.

    Click here for Focus Graphite Corp.'s Corporate Presentation.

    Don K.D. Baxter, P.Eng. is the President of Focus Graphite Inc. He served as President of Northern Graphite Corporation between February 2011 and July 2013 and was responsible for all technical aspects relating to the Bissett Creek graphite project including the bankable feasibility study, metallurgical test work and environmental and mine permitting. He also served as mine superintendent at the Kearney Graphite mine when it operated in the 1990s and as a director of mining at Ontario Graphite Ltd. Baxter has worked for Inco and Noranda Minerals, as well as numerous consulting projects for base and precious metals. He holds a degree in mining engineering from Queen's University, is a Registered Professional Engineer and a Qualified Person under NI 43-101.

    Want to read more Mining Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

    DISCLOSURE:
    1) Alec Gimurtu conducted this interview for The Mining Report and provides services to The Mining Report as an independent contractor. He or his family own shares of the following companies mentioned in this interview: None.
    2) Focus Graphite Inc. paid The Mining Report to conduct, produce and distribute the interview.
    3) Focus Graphite Inc. had final approval of the content and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Focus Graphite Inc. and not Streetwise Reports or The Mining Report or its officers.
    4) The interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer.
    5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise.

    Streetwise - The Gold Report is Copyright © 2014 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.

    Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.

    Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.

    Participating companies provide the logos used in The Gold Report. These logos are trademarks and are the property of the individual companies.

    101 Second St., Suite 110
    Petaluma, CA 94952

    Tel.: (707) 981-8999
    Fax: (707) 981-8998
    Email: jluther@streetwisereports.com

    Mar 10 7:39 PM | Link | Comment!
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